New Zealand’s infrastructure investor Infratil on Monday said it was looking to raise NZ$1.15 billion ($703.8 million) to fund further investment into data centre operator CDC amid increased demand for cloud adoption and generative AI.
The fundraising will comprise of an underwritten placement of NZ$1 billion and a non-underwritten retail offer of NZ$150 million.
The placement shares will be issued at NZ$10.15 apiece, representing a discount of 6.8% to the company’s last close of NZ$10.89 on Friday, while shares to be issued under the retail offer will be issued at a price that is lower than the placement, Infratil said.
Infratil’s increased investment in CDC comes at a time when global private equity investors are readying investments linked to data centres in response to the artificial intelligence boom.
“Trans-Tasman data centre developer and operator CDC has been one of the company’s most successful investments, with its stake currently independently valued at NZ$4,420 million, about 10 times what was first invested in 2016,” Infratil Chief Executive Jason Boyes said.
The firm said it expects to commit equity funding of around A$600 million ($396.30 million) to CDC over the next two years while reiterating no changes to its guidance for fiscal 2025.
Reuters